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Russia’s regions: governance and Well-being, 2000-2008

Author

Listed:
  • Alisher Akhmedjonov

    () (Zirve University)

  • Irina N. Il’ina

    () (National Research University Higher School of Economics)

  • Carol S. Leonard

    () (National Research University Higher School of Economics)

  • Zafar Nazarov

    () (Cornell University)

  • Evgenij E. Plisetskij

    () (National Research University Higher School of Economics)

  • Elena S. Vakulenko

    () (National Research University Higher School of Economics)

Abstract

This paper assesses the impact of the quality of governance on economic performance in Russia’s 83 regions (Oblasts, Republics, Krais and Okrugs) from 2000 to 2008, a period of rapid economic advancement. Defining governance broadly as how authority is exercised, and using as a proxy a measure of the investment risk by region, this paper contributes to the literature on identifying the economic impact of governance. Our results find a significant association between governance in Russia’s diverse regions and economic well-being, that is, we find a performance gap in government practices. Specifically, our study shows that the main components of effective governance are the ability of the government to run effective public health programs aimed at decreasing the overall mortality rate among the working-age population, to create fair labor market conditions for all individuals who are still capable of working, and to improve the investment climate in the region leading to a higher level of investment in fixed assets. Our results implicitly suggest that effective governance comprises the tangible aspects of policymaking such as the adoption of effective public health, investment and labor policies and most importantly, for the regions of Russian Federation, although effective governance can be also an artifact of unobserved and unmeasurable managerial attributes of the local government to implement federal and region level laws and regulations

Suggested Citation

  • Alisher Akhmedjonov & Irina N. Il’ina & Carol S. Leonard & Zafar Nazarov & Evgenij E. Plisetskij & Elena S. Vakulenko, 2013. "Russia’s regions: governance and Well-being, 2000-2008," HSE Working papers WP BRP 42/EC/2013, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:42/ec/2013
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    References listed on IDEAS

    as
    1. Ahrend, Rüdiger, 2012. "Understanding Russian regions’ economic performance during periods of decline and growth—An extreme bound analysis approach," Economic Systems, Elsevier, vol. 36(3), pages 426-443.
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    3. Alisher Akhmedjonov & Marco Chi Keung Lau & Berna Balcı İzgi, 2013. "New evidence of regional income divergence in post-reform Russia," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2675-2682, June.
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    More about this item

    Keywords

    governance; Russian regions; well-being; economy; Russia; investment; investment risk; mortality; public health; labor market;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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